Vedanta, Hindustan Zinc shares in focus as Vedanta Resources' FY23 profit plunges 67%

Shares of Vedanta and Hindustan Zinc will be in focus on Friday morning after Vedanta Resources said it continues to be in a comfortable position to address all its debt maturities with a strong balance sheet, robust liquidity at its operating subsidiaries and strong track record of raising funds through relationship banks.

This is even as the Anil Agarwal company reported a 67 per cent plunge in profit at $838 million for FY23 compared with $2,578 million in FY22. The company had a negative net impact of commodity price fluctuations in FY23 to the tune of $614 million.

Vedanta Resources is a promoter group entity of India-listed Vedanta. Vedanta owns 64.92 per cent stake in Hindustan Zinc.  The Anil Agarwal-led company said it generated an Ebitda of $4.6 billion and a pre-capex free cash flow of $2.8 billion in FY23. While the EBITDA (earnings before interest, taxes, depreciation and amortization) in FY23 was its second highest, the pre-capex cash flow was its all-time high, the

In the release, Vedanta Resources said it clocked record revenue (before special items) for the year at $ 18.1 billion against $17.6 billion in FY22, up  3 per cent YoY. This was primarily driven by higher volumes at Copper and Zinc and strategic hedging gains, partially offset by slip in commodity prices majorly of aluminium, copper, lead, and silver, Vedanta Resources said.

Vedanta Resources said gross debt stood at $15.4 billion against $16.1 billion in FY22. This was mainly due to deleveraging of $1.8 billion at Vedanta Resources standalone partly offset by temporary debt of $1.1 billion at Hindustan Zinc.

"Net debt at $12.7 billion (FY2022: $11.7 billion), primarily due to dividend payment and

capex outflow, partially offset by strong cash flow from operations and working capital release," it said.

Vedanta Resources said it had cash and cash equivalents fell to $2.6 billion in FY23 from $4.4 billion in FY22.  Net debt to Ebitda stood at 2.8 times, it said in a press release.

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